The heart of Copenhagen is ringed by a series of lakes to the northwest and by the inner harbour to the southeast. It is characterised by narrow and predominantly pedestrian streets lined with gabled houses, enticing shops and cafés. The huge Rådhuspladsen (Town Hall Square) lies at the western end of the central area. From here, a series of pedestrianised streets (Strøget) extend as far as Kongens Nytorv (King's New Square). The castles of Rosenborg and Amalienborg and the seaman's district of Nyboder are to be found in the area to the north and east of Kongens Nytorv. Slotsholmen Island, the site of Absalon's original bastion, lies to the southwest. The inner harbour separates the main part of the city from Christianshavn. This island was first developed in the 17th century, when Christian IV offered tax incentives to encourage merchants, shipbuilders and tradesmen to settle there.
In the 20th century, Denmark has achieved international renown for its contemporary design. Arne Jakobsen's furniture graces cool bars and cafés worldwide (not least in Copenhagen). In the city, the architectural heritage of Christian IV is supplemented by daring 20th-century buildings, including the glittering waterfront extension to the Royal Library, known as the ‘Black Diamond'.